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Securing an Effective Energy Bill

The UK Government is currently taking its Electricity Market Reform (EMR) programme through the Houses of Parliament. Royal Assent is expected at the end of 2013, and the legislation will go live in summer 2014.

For wind, wave and tidal energy this will mean getting used to a new support framework, with 2014 to 2017 acting as a transition period before the existing Renewables Obligation closes to new entrants.

RenewableUK has worked hard to represent our industry in EMR by responding to consultations, sitting on working groups, and meeting regularly with officials, ministers and parliamentarians. Throughout we have sought clarity from the government over how it intends to support low carbon generation in this new framework. Much of the detail we need from EMR will only come with the publication of the final Delivery Plan in December, or in secondary legislation which is not expected until 2014. A lack of certainty is currently holding back projects — particularly larger ones — from moving forwards.

Our current concerns relate primarily to how developers will be able to make the change from the Renewables Obligation, their current system of support, to the Contracts for Difference regime when it starts in 2015, and becomes compulsory in 2017, and how the government will allocate future funding under its Levy Control Framework. Throughout the autumn we will be reviewing the government’s proposals on behalf of industry.